Sales and Use Tax Annotations

Annotation 515.0410

(c) ORIGINAL MANUSCRIPTS, PLANS, ETC.

515.0410Calibration. A company is providing a nontaxable service when calibrating petroleum storage tanks by computing the quantity of liquid in the tank at various levels, if all that the company provides it customer is the information generated by its calibration, even if that information is conveyed by written report. However, if the company transfers any other tangible personal property to its customer, it is making a sale of that property to the customer. Unless that sale is for resale in the regular course of business prior to any use by the customer, the company's entire charge is taxable. For example, if the company performs the calibrations in order to provide its customer with a gauge stick or a tape to be used as a pattern or template, the company's entire charge is taxable with no deduction for any of the calibration services which were required in order to provide the tangible personal property. 2/2/51.